M/s. National Seeds Corporation Ltd. Vs. M. Madhusudhan Reddy
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Head Note
The Arbitration and Conciliation Act, 1996 - Section 8 , Section 13 , The Consumer Protection Act,1986 - Section 13 (1)
A farmer purchasing seed from seed corporation and suffered financial loss due to failure of crop on account of defective seed - Remedy of arbitration available to farmer under the agreement - It is an optional remedy - He can either seek reference to an arbitrator or file a complaint under the Consumer Act - Remedy available to consumer under Consumer Protection Act is in addition to and not in derogation of the provisions of any other law.
The Consumer Protection Act,1986 - Section 2
Meaning of word consumer - (i) The definition of 'consumer' contained in Section 2(d) of the Consumer Act is very wide - It takes within its fold any person who buys any goods for a consideration paid or promised or partly paid and partly promised, or under any system of deferred payment. (ii) It also includes any person who uses the goods though he may not be buyer thereof provided that such use is with the approval of the buyer. (iii) It excludes a person who obtains the goods for resale or for any commercial purpose.
The Consumer Protection Act,1986 - Section 3 , Section 13 (1)
Goods sold by seller - Goods found to be defective - In the instant case farmers/growers purchased seed from Seed Corporation - Aggrieved farmers can maintain complaint under Consumer Protection Act, though they had alternative remedy under Seed Act and Arbitration Act - Growers come within definition of consumers. (1996) 6 SCC 385 : 2000(5) SCC 294 relied.
The Consumer Protection Act,1986 - Section 12 , Section 13
Seeds Act, 1966 - Sections 19 and 21 - The aggrieved farmer/grower to lodge complainant with Seeds Inspector for prosecution of seller, but he cannot be denied relief under Consumer Act on the ground of availability alternative remedy.
Topic(s)-Meaning of Word Consumer